By Dwayne Klassen, Commodity News Service Canada
May 28, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher levels at 10:28 CDT Tuesday morning. Much of the support in canola reflected the strong advances posted in CBOT soybeans as well as the downswing in the value of the Canadian dollar, market watchers said.
Chart-based speculative and commodity fund buying helped to take the nearby July future up sharply with the triggering of buy-stops on the way up amplifying the price advance, traders said. There was also some speculation that the gains in July canola came as short position holders try to bail out of those contracts.
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Rain related seeding delays on the Canadian prairies added to the upside in canola with the absence of farmer selling further bolstering prices, brokers said.
Commercial pricing, believed to be covering routine export business and some domestic processor needs, contributed some strength to the deferred canola futures.
Profit-taking at the highs of the day restricted some of the upward price action seen in canola.
As of 10:28 CDT, about 12,767 canola contracts had traded. Of the contracts traded, 3,888 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:28 CDT:
